Finding the best savings account in Arizona means more than just comparing APYs. Arizona residents need to factor in state income tax on interest (Arizona has a flat 2.5% state income tax on savings account interest (reduced from a graduated system in 2023).), FDIC insurance, and account minimums. Here are the top picks for Arizona residents in 2026.
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🏛 Arizona Residents: Arizona's flat 2.5% income tax rate is one of the most favorable in the country for savings account interest. On $3,000 in annual interest, an Arizona resident pays only $75 in state income tax vs. $165 in Georgia.
Are savings accounts taxed in Arizona?
Arizona has a flat 2.5% state income tax on savings account interest (reduced from a graduated system in 2023). Interest earned in savings accounts is considered ordinary income and must be reported on your federal and state tax returns.
What is the best savings account in Arizona right now?
As of March 2026, Marcus by Goldman Sachs (4.50% APY) and SoFi (4.60% APY with direct deposit) offer the best rates available to Arizona residents. Both are FDIC insured with no monthly fees.
Can I open an online savings account if I live in Arizona?
Yes. All major online savings accounts (Marcus, Ally, SoFi, Discover, American Express) are available to Arizona residents. Online accounts typically offer significantly higher APYs than local banks and credit unions.